View full sizeAlabaster City Schools Board President Adam Moseley, Superintendent Wayne Vickers, board Vice President Derek Henderson and board member John Myrick take a tour of the district's new offices in the second floor of the soon-to-open City of Alabaster administration building on Friday, Sept. 13, 2013. (Martin J. Reed / mreed@al.com)

ALABASTER, Alabama -- The Alabaster Board of Education
today approved the fledgling district's proposed budget for the new fiscal year
that includes a nearly two-month general fund operating reserve.

The general fund budget that covers the district's day-to-day
operations anticipates total revenues at about $51.4 million with total
expenditures at $45 million. It is the district's first budget since separating
from the Shelby County Board of Education system on July 1.

After considering other fund sources and uses, the
general fund's proposed spending plan has more than $5 million in excess
revenues, with the projected ending fund balance at almost $7.3 million, which
amounts to 1.89 months of operating reserves.

"I think it speaks volumes we are looking at this kind of
a balance at the end of the first year for a startup system," Board of
Education President Adam Moseley said. "To have almost two months' reserve,
that is fantastic."

The budget reserve for the general fund takes into
account some $600,000 in spending by the board over the past several months to
improve the school facilities with cleaning, new carpeting and tile, painting
and other maintenance.

"We would have had much more than that in the reserve"
without the extra spending by the board on improving the facilities and other
work to benefit the district, board member Linda Church said. "We're doing a
conservative budget and we're doing so many extra things."

The board also approved $150,000 in improvements to air
conditioning systems in the schools. The budget takes into account additional
personnel including office staff, two assistant principals, three
gifted-program teachers and three teachers at Creek View Elementary.

"This is just the tip of the iceberg of what's going to
happen for our schools and our students," Superintendent Wayne Vickers said. "This
budget really shows us what we can get done" for the benefit of the students,
schools and employees.

"We will not rest until we are the best district in the
state, and we have the revenues and city support to make that happen," Vickers
said.

The budget's general fund's total revenues come primarily
from $31.8 million in state dollars and $19.5 million in local revenues. "We
were very fortunate to have that much local funds," Chief School Financial
Officer Sarita Tapscott said.

Just in the local funds, the 16-mill countywide ad
valorem tax is expected to generate $8.3 million for the district, while the
11-mill tax will generate $3.1 million and the 3-mill tax will bring in
$857,000. Also, the .5 percent county sales tax will bring in $2.6 million and
the 1 percent district sales tax in Alabaster will generate about $3.8 million.

General fund expenditures include $27.3 million for instructional
services, $7.6 million for instructional support services, $4.7 million for
operations and maintenance, $3.1 million for transportation and auxiliary
services, $1.8 million in general administrative services and $532,000 for
other expenditures.

Looking at the proposed budget approved by the board, "I
think that shows everyone this is in the best interest of Alabaster and our
children to form our own system," Moseley said.

Board Vice President Derek Henderson complimented the
budget for having the nearly two-month reserve. "That means the planning and
conservative spending we were doing worked," he said.

Henderson pointed to "good customer service" by the
district to make the operation a success. "We did what we thought was best for
the customers that we serve," he said.

Vickers said the spending plan is proposed and will have
opportunities for amendments.

"I am proud of what this city and school system will
accomplish together," he said. "It's a great a day to be a part of the
Alabaster City Schools."